Reading: Mars Incorporated: Building an Innovation System
Who: Gilles Morel, President of Mars, Incorporated's Central Europe Region
Immediate Issue/Problem Being Faced: Morel doesn't know whether he should continue to appoint internal associates to mandate innovation strategies or if he should hire an external group of employees to take on the innovation initiatives at Mars, Incorporated - he has so much negativity from within the company and little partcipation is initiated.
Morel needs to create a strategic plan for the company’s overall framework for innovation to be presented on August 2009. Morel doesn't know whether he should continue to appoint internal associates to mandate innovation strategies or if he should hire an external group of employees to take on the innovation initiatives at Mars, Incorporated - he has so much negativity from within the company and little participation is initiated.
Basic Issues:
- Current framework for innovation is very rigid - There are far too many innovation leaders in the organization making the process very convoluted - Mars pushes ideas onto the organization instead of slowly gathering buy in from individual regions - Mars is losing valuable employees because its long term vision for innovation is very blurry - Most employees have lost interest in the innovation strategies, as well, they could even be a little resentful that it is being pushed so hard on them. - Also Chyla, the innovation director has left the company because he and Morel came to a disagreement on how to properly instill innovation within Mars. A lot of managers and employees share three basic beliefs: 1. They are in disagreement of what innovation exactly entails while others believed innovation already existed 2. Progress cannot be easily measured, also if employees/innovators fail they feel guilty and lose motivation
3. people felt they had not time for innovation because they all had their own jobs to do which included making money, as well as making sure products were properly marketed, delivered, etc
Urgency/Importance: II. If a decision isn't made now in regards to what to do, too much time can be wasted and Mars, Incoprated could lose what support they presently have for innovation initiatives within their regions. As well, the future of Mars, Incorporated would be uncertain because without innovation, they would not have a competitive advantage
Decision Criteria: -Need the support of corporate executives, senior level management, and all employees that it will effect (everyone) -the framework needs to be created with the organization in order to receive this support -the framework needs to be less formal. You cannot create an “innovation department” like you can create an accounting department. Innovation is the result of passion for the product, proper incentive, and a feeling of ownership from everyone involved. -the framework needs to be simple. They will need to communicate this information across 17 countries and in multiple languages. - Country managers need to get on board and realize that there is merit in creating innovation and not just dismiss it - Does Mars have the manpower to sacrifice in order for innovation within the company to occur – employees involved with the innovation teams cannot fully focus on their assigned job responsibilities because they also have to think of the innovation responsibilities - There is a probability that if Mars continues to pressure in-house staff to be innovative, they could be missing out on deadlines or doing ‘sloppy’ work, causing the company to lose out on profits - If Morel keeps innovation responsibility within company, employees could leave/protest; employees won't be able to fully concentrate on their assigned jobs and jeopardize product quality and/or make some bad decisions because of being worn too thin; and with the acquisition of Wrigley, priorities have had to change because Mars, Incorporated had to borrow $11 billion, now they will have to concentrate more on profits to pay for that newly acquired debt. If outside innovators are hired, they could commit full-time to innovation and hopefully have fresh ideas because they have no other priorities
Alternatives:
1.Continue the current structured innovation process with improvements made - offer internal employees better incentives and/or allow whoever takes an interest in innovation to become innovation ambassadors 2.Restructure the entire framework. The objective may be to create a completely transformative culture change that will be led by the corporate executive but will include the opinions and ideas of everyone involved – the root of some of the problems are the country managers refusal to cooperate, so to counteract this, when it comes to innovation, intervention from corporate staff should be allowed or encouraged 3. Hire an external team to concentrate solely on innovation
Missing Information: The cost of hiring external employees - will it outweigh the benefits (simple to find this information). Studies on which method would be better - internal vs external (a little bit difficult to assess and maybe time-consuming). Would there be enough participation from within to even warrant suggesting voluntary innovation embassadors (easy to get this info by doing a survey)
Assessment of Alternatives:
1.Pros • Employees within are ‘front-line’ and are most familiar with their company • Don’t to pay extra money to outside personnel • Employees could feel a sense of satisfaction Cons • Employees still resentful towards company • Processes will remain the same – not improving innovation within • May inhibit effectiveness of employees within their regular positions 2.Pros • Employees within are ‘front-line’ and are most familiar with their company • Sense of involvement within • Cons • Employees still resentful towards company • Processes will remain the same – not improving innovation within • May inhibit effectiveness of employees within their regular positions 3. Pros • External employees would be fresh • Internal employees would be able to concentrate on their jobs • Specialization in innovation Cons • pay extra money to outside personnel • External employees may not be familiar with Mars, International • Might take a long time for external employees to understand what management truly needs
Selection of Preferred Alternative:
The best alternative would be option 2
Assumptions:
As stated in previous readings, innovation often comes from informal conversations around a pool table at a bar or while playing cards with your friends. Innovation cannot be forced upon an entire multinational company without a careful strategic plan to get the buy in of the company first. Innovation comes from a passion for the company and the product. Forcing individuals to be innovative without showing them what innovation is a set up for a failed attempt. In fact, this formal structure is also a detriment to your operations. Communicating to your employees in such an unclear manner lessens the credibility of the ideas being implemented at a corporate level.
Action/Implementation Plan:
Morel needs to familiarize himself with all regions and research Mars’ current position before he can even attempt to create this strategic plan. Once he has understood the current state and resources available, he will have a better idea as to what is possible and what the company needs/wants.
Case Analysis Template
Reading: Mars Incorporated: Building an Innovation System
Who: Gilles Morel, President of Mars, Incorporated's Central Europe Region
Immediate Issue/Problem Being Faced: Morel doesn't know whether he should continue to appoint internal associates to mandate innovation strategies or if he should hire an external group of employees to take on the innovation initiatives at Mars, Incorporated - he has so much negativity from within the company and little partcipation is initiated.
Morel needs to create a strategic plan for the company’s overall framework for innovation to be presented on August 2009. Morel doesn't know whether he should continue to appoint internal associates to mandate innovation strategies or if he should hire an external group of employees to take on the innovation initiatives at Mars, Incorporated - he has so much negativity from within the company and little participation is initiated.
Basic Issues:
- Current framework for innovation is very rigid- There are far too many innovation leaders in the organization making the process very convoluted
- Mars pushes ideas onto the organization instead of slowly gathering buy in from individual regions
- Mars is losing valuable employees because its long term vision for innovation is very blurry
- Most employees have lost interest in the innovation strategies, as well, they could even be a little resentful that it is being pushed so hard on them.
- Also Chyla, the innovation director has left the company because he and Morel came to a disagreement on how to properly instill innovation within Mars.
A lot of managers and employees share three basic beliefs:
1. They are in disagreement of what innovation exactly entails while others believed innovation already existed
2. Progress cannot be easily measured, also if employees/innovators fail they feel guilty and lose motivation
3. people felt they had not time for innovation because they all had their own jobs to do which included making money, as well as making sure products were properly marketed, delivered, etcUrgency/Importance: II. If a decision isn't made now in regards to what to do, too much time can be wasted and Mars, Incoprated could lose what support they presently have for innovation initiatives within their regions. As well, the future of Mars, Incorporated would be uncertain because without innovation, they would not have a competitive advantage
Decision Criteria:
-Need the support of corporate executives, senior level management, and all employees that it will effect (everyone)
-the framework needs to be created with the organization in order to receive this support
-the framework needs to be less formal. You cannot create an “innovation department” like you can create an accounting department. Innovation is the result of passion for the product, proper incentive, and a feeling of ownership from everyone involved.
-the framework needs to be simple. They will need to communicate this information across 17 countries and in multiple languages.
- Country managers need to get on board and realize that there is merit in creating innovation and not just dismiss it
- Does Mars have the manpower to sacrifice in order for innovation within the company to occur – employees involved with the innovation teams cannot fully focus on their assigned job responsibilities because they also have to think of the innovation responsibilities
- There is a probability that if Mars continues to pressure in-house staff to be innovative, they could be missing out on deadlines or doing ‘sloppy’ work, causing the company to lose out on profits
- If Morel keeps innovation responsibility within company, employees could leave/protest; employees won't be able to fully concentrate on their assigned jobs and jeopardize product quality and/or make some bad decisions because of being worn too thin; and with the acquisition of Wrigley, priorities have had to change because Mars, Incorporated had to borrow $11 billion, now they will have to concentrate more on profits to pay for that newly acquired debt.
If outside innovators are hired, they could commit full-time to innovation and hopefully have fresh ideas because they have no other priorities
Alternatives:
1.Continue the current structured innovation process with improvements made - offer internal employees better incentives and/or allow whoever takes an interest in innovation to become innovation ambassadors2.Restructure the entire framework. The objective may be to create a completely transformative culture change that will be led by the corporate executive but will include the opinions and ideas of everyone involved – the root of some of the problems are the country managers refusal to cooperate, so to counteract this, when it comes to innovation, intervention from corporate staff should be allowed or encouraged
3. Hire an external team to concentrate solely on innovation
Missing Information: The cost of hiring external employees - will it outweigh the benefits (simple to find this information). Studies on which method would be better - internal vs external (a little bit difficult to assess and maybe time-consuming). Would there be enough participation from within to even warrant suggesting voluntary innovation embassadors (easy to get this info by doing a survey)
Assessment of Alternatives:
1.Pros• Employees within are ‘front-line’ and are most familiar with their company
• Don’t to pay extra money to outside personnel
• Employees could feel a sense of satisfaction
Cons
• Employees still resentful towards company
• Processes will remain the same – not improving innovation within
• May inhibit effectiveness of employees within their regular positions
2.Pros
• Employees within are ‘front-line’ and are most familiar with their company
• Sense of involvement within
•
Cons
• Employees still resentful towards company
• Processes will remain the same – not improving innovation within
• May inhibit effectiveness of employees within their regular positions
3. Pros
• External employees would be fresh
• Internal employees would be able to concentrate on their jobs
• Specialization in innovation
Cons
• pay extra money to outside personnel
• External employees may not be familiar with Mars, International
• Might take a long time for external employees to understand what management truly needs
Selection of Preferred Alternative:
The best alternative would be option 2Assumptions:
As stated in previous readings, innovation often comes from informal conversations around a pool table at a bar or while playing cards with your friends. Innovation cannot be forced upon an entire multinational company without a careful strategic plan to get the buy in of the company first. Innovation comes from a passion for the company and the product. Forcing individuals to be innovative without showing them what innovation is a set up for a failed attempt. In fact, this formal structure is also a detriment to your operations. Communicating to your employees in such an unclear manner lessens the credibility of the ideas being implemented at a corporate level.Action/Implementation Plan:
Morel needs to familiarize himself with all regions and research Mars’ current position before he can even attempt to create this strategic plan. Once he has understood the current state and resources available, he will have a better idea as to what is possible and what the company needs/wants.